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Interest rates on mortgages stabilize, interest in mortgage lending

In December 2019 banks provided 7 074 mortgages, which is about 231 currencies than in November, when 7 305 mortgage loans were closed. The total volume of mortgages provided in the last month of 2019 did not exceed USD 18 billion and reached USD 17.996 billion.

Although interest rates were further reduced, the number of mortgage loans negotiated was not reflected and decreased. However, the volume of these trades does not decrease as fast as the numbers. Therefore, the record in the relative amount of the provided loan and the amount of USD 2,543,963 was again broken. 

Development of mortgages

Development of mortgages

Low-interest rates are no longer paying clients. Although the interest in mortgages in December was large in comparison with other months of last year, the volume and number of He were November.

In December, banks borrowed an average of USD 2,505,291. This is mainly due to the steadily rising property prices. The average mortgage has been above two million crowns since November 2016. 2016

For mortgages negotiated in the amount of one million crowns with maturity for twenty years, the monthly payment is up to an average of 5 221 crowns, With a maturity of 15 years, the monthly payment is USD 6,593.

The mortgage market will not avoid the rate increase

The mortgage market will not avoid the rate increase

The development of average interest rates in recent months suggests that the room for a further decline has already been closed. In December, only Good Finance cheaper mortgages. Large banks were backed up in mortgage rates as early as December and continue to do so in the new year.

“Fundamentally, the price of resources is rising from the wall and is now 0.9 percentage points more than four months ago,” David Kim, Vice-Chairman of the Board of Directors of Across Lender.

The Mortgage Bank again increased mortgage interest rates by 0.2 percentage points, effective from 13 January. 

Kud we deduct from individual discounts granted to a particular client, the mortgage can still be secured at a rate of up to 2.5% pa or possibly still somewhat, if the client at the same time with the mortgage lending to take such risk insurance, “notes David Kim.

The market dropped year-on-year

The year 2019 on the mortgage market was marked by the adaptation of banks and customers on the recommendation of the CNB in ​​October 2018 and tightening conditions for n mortgages. After the last decade, when the mortgage market grew, including literally record-breaking in the last three years, it began to decline.

At the beginning of 2019, we estimated the market outcome at USD 200 billion annually in the total volume of mortgages sold, the latest figures show that the market Hodnotyhl value of 181 billion crowns. Year-on-year, let’s talk about the fifth decline, summarizing the results of Mr. Feix, Chairman of the Board of Directors and Chief Executive Officer of Mortgage Bank.


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